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    NORTH AMERICAN Newsline                                            FEBRUARY 13, 2026       |  The Indian Eye 30

             Mayor Mamdani Announces $5 Million Settlement

                and Reinstatement for Thousands of Wrongfully

                                 Deactivated Food Delivery Workers

                 Uber Eats, Fantuan, and HungryPanda to Pay $5.19 Million in Restitution and Penalties;
                                              Up to 10,000 Workers Eligible for Reinstatement

            OUR BUREAU

            NEW YORK, NY
                     ayor  Zohran  Kwame  Mamdani  and
                     Department  of  Consumer  and  Worker
            MProtection (DCWP) Commissioner Sam
            Levine have announced more than $5 million in
            restitution,  civil  penalties,  and  damages  secured
            from three major restaurant delivery app compa-
            nies for violations of New York City’s Minimum
            Pay Rate law for app-based delivery workers.
                Under  the  settlement,  Uber  Eats,  Fantuan,
            and HungryPanda will collectively pay $5,195,000,
            benefiting more than 49,000 delivery workers city-
            wide. In addition, Uber Eats has agreed to rein-
            state  workers  wrongfully  deactivated  between
            December 2023 and September 2024, potentially
            restoring access to work for as many as 10,000 de-
            livery workers.
                “In the first month of this administration, our
            city has made one thing unmistakably clear: there
            is  zero  tolerance  for  exploiting  workers,  cutting
            corners on labor protections, or rigging our econ-  systems,  which  combine  monthly  reporting  re-  Deliveristas Unidos, said the settlement confirms
            omy to serve wealthy corporations at the expense   quirements for app companies with targeted work-  what  workers  have  long  argued.  “Exploitation  is
            of  working  people,”  said  Mayor  Zohran  Kwame   er  outreach.  This  approach  allows  the  agency  to   not an accident—it’s baked into the app delivery
            Mamdani. “This settlement delivers real relief to   rapidly identify violations, stop unlawful practices,   business model,” she said. “Today’s victory shows
            thousands of New Yorkers and draws a red line for   and ensure workers receive both unpaid wages and   that those days are coming to an end.”
            corporate abuse. If you break the law and profit   additional compensation for harm suffered.  The  settlement  comes  as  the  Mamdani  ad-
            from exploitation, you will be held accountable—  State and city leaders praised the settlement as   ministration intensifies enforcement of the City’s
            swiftly and directly.”                       a major victory for delivery workers, known as de-  Delivery Worker Laws. Earlier this month, DCWP
                DCWP  Commissioner  Sam  Levine  empha-  liveristas, who form a vital part of New York City’s   filed a lawsuit against Motoclick and issued compli-
            sized that the settlement reflects a new era of en-  economy.                              ance warnings to more than 60 app companies, in-
            forcement. “The days of giant corporations juicing   “New  York  will  not  stand  by  while  corpora-  cluding DoorDash, Grubhub, Instacart, and Uber.
            profits by underpaying workers are over,” Levine   tions break the law and exploit working people,”   Recent  legislation  includes  Local  Law  113,
            said. “We’re not only returning full back pay, but   said State Senator Kristen Gonzalez. “The mini-  increasing pay transparency; Local Laws 123 and
            also recovering damages and penalties to send a   mum pay rate exists because workers deserve dig-  124, expanding minimum pay protections and pay-
            strong message: cheating workers will not be toler-  nity, stability, and fair pay.”       ment rights; and Local Laws 107 and 108, requir-
            ated in New York City.”                          Council Member Harvey Epstein, Chair of the   ing tipping options at checkout. A recent DCWP
                According  to  DCWP  investigations,  Uber   Committee on Consumer and Worker Protection,   report found that DoorDash and Uber used inter-
            Eats will pay $3.15 million in restitution to more   called the agreement “a victory for working-class   face design tactics that reduced worker tips by $550
            than 48,000 workers, along with $350,000 in civil   New  Yorkers  over  corporate  greed,”  noting  that   million—practices that are now illegal.
            penalties and fees, after failing to pay the required   delivery  companies  have  long  preyed  on  vulner-  New York City’s Minimum Pay Rate, first es-
            minimum  rate  for  time  spent  on  canceled  trips   able,  immigrant  communities.  “This  settlement   tablished under Local Law 115 of 2021, has signifi-
            between  December  2023  and  September  2024.   marks the beginning of a new era,” Epstein said.  cantly increased average hourly earnings for app-
            Fantuan will pay more than $468,000 in restitution   Council Members Shaun Abreu, Sandy Nurse,   based delivery workers without reducing delivery
            to 285 workers, plus over $52,000 in penalties, for   and Jen Gutierrez echoed the sentiment, empha-  volume. The rate will rise to $22.13 per hour for
            violations occurring between December 2023 and   sizing  that  enforcement—combined  with  worker   the first pay period on or after April 1, 2026, re-
            February 2024. HungryPanda will pay $1,068,672   organizing and strong legislation—has finally be-  flecting inflation adjustments.
            in  restitution  to  more  than  1,000  workers,  along   gun  to  shift  power  away  from  multibillion-dollar   With  this  settlement,  city  officials  say  New
            with $106,327 in penalties, for violations between   app companies and back toward workers.  York is setting a national standard for protecting
            December 2023 and January 2024.                  Labor  advocates  also  welcomed  the  an-  gig  workers—proving  that  strong  laws,  real  en-
                These  cases  highlight  the  effectiveness  of   nouncement. Ligia Guallpa, Executive Director of   forcement, and organized workers can hold even
            DCWP’s compliance monitoring and enforcement   the Worker’s Justice Project and co-founder of Los   the most powerful corporations accountable.

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